It is this obvious truth which makes the second great division in the
produce of wealth. You must, as we have seen, produce enough to keep
labour going. That is, you must produce enough to satisfy the standard
of subsistence in your society; _but you must also produce enough
more to keep capital accumulating_. You must produce, over and above
subsistence, whatever happens to be the amount of _profits_ for which
capital will accumulate in any particular society (with us, to-day, it
is about 5 per cent.).
It is very important to observe that this second division, Profit, or
Interest, must always be present, no matter how the capital is owned
and controlled, no matter who gets the profit.
Some people have thought that if you were to take capital away from the
rich men who now own most of it and to give it to the politicians to
manage for everybody, this division, Profit, would disappear. But it
is not so. The people who were managing the capital for the benefit of
everybody would have to tell the electors that they could not have all
the wealth produced to consume as they chose: a certain amount would
have to be kept back, and people would only consent to have a certain
amount kept back on condition that they got an advantage in the future
as a reward of their immediate sacrifice. Even if you had a Despot at
the head of the State who cared nothing for people’s opinions, this
division of profit would still be there; for it would be mere waste to
accumulate capital at a heavy sacrifice to himself and his subjects,
unless it produced a future reward.
If the Despot said, “This year you must do without _half_ your usual
amount of leisure and without _half_ your usual amounts, pay _double_
for your cinemas and for your beer, and all that in order to earn one
hundredth more leisure and amusements next year,” it would be found
intolerable.
So it comes to this: There are always present in the process of
production two agents, Capital and Labour, and each of these must
have in one form or another its “Worth While,” otherwise it won’t go
on. You must satisfy the “Worth While of Labour” and you must satisfy
the “Worth While of Capital.” If you do not, labour stops working and
capital stops accumulating, and the whole business of production breaks
down.
(Of course, we must be careful to distinguish between the case of
a private man increasing his investments and the general increase
of capital as applied to an unchanging area of natural forces. John
Smith having £1,000 invested at 5 per cent. can save another £1,000
and another and many more, and still get 5 per cent. But that is
because he is saving and makes up for others wasting, or because
his saving is so small a proportion of the total Capital of Society
that it has no appreciable effect. But if the total Capital of
Society be thus increased the Law of Diminishing Returns eventually
comes into play.)
3. RENT.
Public-domain text, read in full here on John Shaqi.
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